Honda Motor Co., Ltd. Reports Consolidated Financial Results For The Fiscal First Quarter Ended June 30, 2016

TOKYO, Aug. 2, 2016 /PRNewswire/ -- Honda Motor Co., Ltd. HMC today announced its consolidated financial results for the fiscal first quarter ended June 30, 2016.

First Quarter Results

Honda's consolidated profit for the period attributable to owners of the parent for the fiscal first quarter ended June 30, 2016 totaled JPY 174.6 billion (USD 1,698 million), a decrease of 6.1% from the same period last year, due primarily to an increase in Income tax expense. Earnings per share attributable to owners of the parent for the quarter amounted to JPY 96.93 (USD 0.94), a decrease of JPY 6.29 (USD 0.06) from JPY 103.22 for the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated sales revenue for the quarter amounted to JPY 3,471.7 billion (USD 33,736 million), a decrease of 6.3% from the same period last year, due primarily to unfavorable foreign currency translation effects, despite increased consolidated unit sales in automobile and motorcycle business operations.

Consolidated operating profit for the quarter amounted to JPY 266.8 billion (USD 2,593 million), an increase of 11.5% from the same period last year, due primarily to continuing cost reduction efforts and an increase in profit attributable to increased sales revenue and model mix, as well as decreased SG&A expenses, including quality related expenses, despite unfavorable foreign currency effects and the effects of the 2016 Kumamoto Earthquake.

Share of profit of investments accounted for using the equity method for the quarter amounted to JPY 27.2 billion (USD 265 million) for the quarter, a decrease of 29.0% from the corresponding period last year.

Consolidated profit before income taxes for the quarter totaled JPY 288.4 billion (USD 2,803 million), an increase of 2.2% from the same period last year.

Business Segment

In motorcycle business operations, sales revenue decreased 8.5%, to JPY 432.4 billion (USD 4,202 million) from the same period last year. Operating profit totaled JPY 31.1 billion (USD 303 million), a decrease of 43.9% from the same period last year.

In automobile business operations, sales revenue decreased 6.6%, to JPY 2,498.9 billion (USD 24,283 million) from the same period last year. Operating profit totaled JPY 184.5 billion (USD 1,793 million), an increase of 41.1% from the same period last year.

In financial services business operations, sales revenue decreased 1.9%, to JPY 464.6 billion (USD 4,515 million) from the same period last year. Operating profit decreased 3.6% to JPY 50.5 billion (USD 491 million) from the same period last year.

In power product and other businesses operations, sales revenue decreased 8.3%, to JPY 75.6 billion (USD 735 million) from the same period last year. Operating profit totaled JPY 0.5 billion (USD 5 million), an increase of 2.9% from the same period last year.

Explanatory note:

United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 102.91=USD 1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on June 30, 2016.

Forecasts for the Fiscal Year Ending March 31, 2017

In regard to the forecasts of the consolidated financial results for the fiscal year ending March 31, 2017, we have not changed our forecast from our previous announcement on May 13, 2016.

Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2017

 

Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on August 2, 2016, resolved to make the quarterly dividend JPY 22 per share of common stock, the record date of which is June 30, 2016. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2017, is JPY 88 per share.

This announcement contains "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management's assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time.

For Additional Information, please visit;     
http://world.honda.com/investors/library/financialresult/  

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SOURCE Honda Motor Co., Ltd.